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Property and Equipment Property and Equipment
12 Months Ended
Dec. 31, 2016
Property, Plant and Equipment [Abstract]  
Property and Equipment
Property and Equipment

Property and equipment consists of the following at December 31, 2016 and 2015:
(in thousands)
 
2016
 
2015
Land
 
$
57,693

 
$
58,757

Buildings and improvements
 
93,252

 
90,429

Leasehold improvements
 
17,610

 
10,934

Furniture, fixtures and equipment
 
136,513

 
115,861

Vehicles
 
97,119

 
87,307

Construction-in-progress
 
12,574

 
16,349

 
 
414,761

 
379,637

Less: Accumulated depreciation
 
(128,020
)
 
(83,659
)
 
 
$
286,741

 
$
295,978



Total depreciation expense for the years ended December 31, 2016, 2015 and 2014 was $48.0 million, $21.0 million and $15.5 million, respectively, including amortization expense related to capital leases. These amounts include depreciation expense of $9.5 million, $5.3 million and $4.0 million included in cost of goods sold in 2016, 2015 and 2014, respectively.

Impairment of BMHC ERP System

During 2013, BMHC selected a new third-party software vendor for its planned Enterprise Resource Planning ("New ERP") system and began incurring costs related to design, development and implementation of the New ERP. BMHC also began paying an annual licensing fee. During March 2016, the Company decided to integrate all operations under the Enterprise Resource Planning system utilized by Legacy SBS (the "Legacy SBS ERP system") and to discontinue the use of the New ERP. In connection with this decision, the Company recorded asset impairment charges of approximately $11.9 million in its consolidated statement of operations for the year ended December 31, 2016 related to capitalized software development costs for New ERP functionality that the Company had intended to implement in future periods. These costs had previously been recorded as construction-in-progress within property and equipment on the consolidated balance sheets.

As of December 31, 2016, the Company had approximately $1.6 million of unamortized prepaid expenses related to the New ERP recorded within prepaid expenses and other current assets on its consolidated balance sheet. These unamortized prepaid expenses relate to license and service contracts that will continue to be utilized by the Company until the time the Company ceases using the New ERP system. The Company is also obligated under a non-cancellable agreement to make future payments through 2017 of approximately $2.0 million related to New ERP software licenses. The Company may be required to accelerate the expense recognition of any unamortized prepaid costs and future contractual costs once we cease using the New ERP.